Singaporean firm Sun Venture has bought one of WeWork’s City of London office buildings at 120 Moorgate, EC2, netting the co-working giant £148m.
The investor confirmed today (1 February) that the deal had completed after EG revealed the freehold acquisition last year.
In its third London investment play, Sun Venture has bought the block at a 4.5% yield and capital value of £1,311 per sq ft. Sun Venture bought 1 & 2 New Ludgate, EC4, from Landsec in the biggest central London office deal of 2020.
WeWork’s investment vehicle, Ark, bought 120 Moorgate in 2017 for £40m, before undertaking a significant refurbishment in 2019. That involved replacing its dated facades, in part to improve its thermal and acoustic properties.
Inside, existing office space on the upper floors was refurbished, with gym facilities and a bicycle store added to the basement levels in place of an underground car park.
The redeveloped block comprises 112,900 sq ft of office, retail and leisure space. It also has two terraces on the second and seventh floors.
The offices are let to WeWork, while Barclays occupies a retail banking unit and the leisure unit is let to gym operator Third Space.
Jeun Jye Ong, head of real estate at Sun Venture, said the block would benefit from the upcoming opening of Crossrail nearby.
“Our third acquisition in central London brings our total London portfolio close to £900m, and underscores our confidence in the market. It also reaffirms our strategy as a firm to expand our presence overseas,” he added.
Felix Rabeneck, director of central London investment at Savills, said: “This demonstrates not only their commitment to the central London market but also highlights the compelling aspects of London real estate to global investors.”
Sun Venture was advised by Savills, Eversheds Sutherland and KPMG.
View other recent deals around Moorgate >>
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